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Zimbabwe's GDP grows 2.9% to US$45.7 billion
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Zimbabwe's economy expanded by 2.9 percent in 2024, with the Gross Domestic Product (GDP) rising to US$45.7 billion from US$44.4 billion in 2023, according to the latest figures released by the Zimbabwe National Statistics Agency (ZimStat).
The statistics agency calculated GDP using an exchange rate of ZiG18 to US$1, translating the local currency GDP at current prices of ZiG822.94 billion into the headline US dollar figure. The previous year's GDP was ZiG67.5 billion, valued at US$44.4 billion at the then-prevailing exchange rate of ZiG1.52 to US$1.
ZimStat employed the income approach to GDP measurement, revealing that compensation of employees was the largest contributor, totalling ZiG344.46 billion. This was followed by gross operating surplus at ZiG288.23 billion, while mixed income, net taxes on products, and taxes on products made up the balance at ZiG143 billion, ZiG47 billion, and ZiG48.1 billion respectively.
The manufacturing sector topped the list of sectoral contributors to GDP, accounting for 15.6 percent, a slight increase from 15.3 percent in 2023, after posting a 1.61 percent growth rate.
Coming in second was the mining and quarrying sector, which boasted the highest growth rate of 12.9 percent, contributing 14.3 percent to the economy. This performance underscores the continued resilience and global demand for Zimbabwe's mineral exports, particularly gold, platinum, and lithium.
The wholesale and retail trade sector claimed third spot, contributing 11.8 percent following a 2.6 percent growth rate.
However, the report also highlighted downturns in key sectors. The agriculture, forestry, and fishing sector-traditionally a cornerstone of Zimbabwe's economy-contracted by a steep 18.12 percent, mainly due to the El Niño-induced drought. Its contribution to GDP dropped sharply to 8.7 percent, down from 11.5 percent in the previous year.
Also impacted was the accommodation and food service activities sector, which registered a negative growth rate of 6.4 percent. Interestingly, its share of GDP rose to 2.6 percent from 2.2 percent, potentially reflecting increased tourism inflows or inflationary price shifts in the hospitality industry.
The modest growth in GDP comes amid ongoing efforts by the government to stabilise the macroeconomic environment, support value-added industries, and improve export competitiveness. However, the impact of climate change on agriculture and challenges in infrastructure and energy supply continue to pose risks to sustained growth.
ZimStat is expected to provide further breakdowns and forecasts as the year progresses, offering insights into whether Zimbabwe can maintain its upward trajectory amid a complex global and regional economic landscape.
The statistics agency calculated GDP using an exchange rate of ZiG18 to US$1, translating the local currency GDP at current prices of ZiG822.94 billion into the headline US dollar figure. The previous year's GDP was ZiG67.5 billion, valued at US$44.4 billion at the then-prevailing exchange rate of ZiG1.52 to US$1.
ZimStat employed the income approach to GDP measurement, revealing that compensation of employees was the largest contributor, totalling ZiG344.46 billion. This was followed by gross operating surplus at ZiG288.23 billion, while mixed income, net taxes on products, and taxes on products made up the balance at ZiG143 billion, ZiG47 billion, and ZiG48.1 billion respectively.
The manufacturing sector topped the list of sectoral contributors to GDP, accounting for 15.6 percent, a slight increase from 15.3 percent in 2023, after posting a 1.61 percent growth rate.
Coming in second was the mining and quarrying sector, which boasted the highest growth rate of 12.9 percent, contributing 14.3 percent to the economy. This performance underscores the continued resilience and global demand for Zimbabwe's mineral exports, particularly gold, platinum, and lithium.
However, the report also highlighted downturns in key sectors. The agriculture, forestry, and fishing sector-traditionally a cornerstone of Zimbabwe's economy-contracted by a steep 18.12 percent, mainly due to the El Niño-induced drought. Its contribution to GDP dropped sharply to 8.7 percent, down from 11.5 percent in the previous year.
Also impacted was the accommodation and food service activities sector, which registered a negative growth rate of 6.4 percent. Interestingly, its share of GDP rose to 2.6 percent from 2.2 percent, potentially reflecting increased tourism inflows or inflationary price shifts in the hospitality industry.
The modest growth in GDP comes amid ongoing efforts by the government to stabilise the macroeconomic environment, support value-added industries, and improve export competitiveness. However, the impact of climate change on agriculture and challenges in infrastructure and energy supply continue to pose risks to sustained growth.
ZimStat is expected to provide further breakdowns and forecasts as the year progresses, offering insights into whether Zimbabwe can maintain its upward trajectory amid a complex global and regional economic landscape.
Source - The Herald
